NEWS - Friday, May 9, 2003


E3 stirs up game console speculation

How low can the game industry go? That’s what video game buffs are wondering as the industry gears up for its biggest trade show of the year, next week’s Electronic Entertainment Expo (E3), which regularly triggers major price cuts for game consoles. Sony jumped the gun last year, triggering a widely expected round of price cuts just before E3. But expectations for this year’s show, which runs Wednesday through May 17 in Los Angeles, are hazier with many analysts calculating the odds as slightly against any price cuts. Billy Pidgeon, an analyst for research firm Zelos Group, said current prices for game consoles -- $200 for both Microsoft’s Xbox and Sony’s PlayStation 2 and $150 for Nintendo’s GameCube -- are already pretty aggressive. Instead of cutting into their bottom line, game companies are more likely to look for other ways to juice up sales, such as offering deals that bundle consoles with selected games. Hardware changes are also likely. Sony has already announced a new PlayStation 2 configuration, and Pidgeon expects Microsoft to introduce a slimmed-down version of the Xbox. Schelley Olhava, an analyst for research firm IDC, calculates a 50-50 chance of price cuts around E3. "I can see justification both ways," she said, adding that bundling deals have proven to be effective sales boosters lately. "There’s been a big trend since the holidays to bundle, and they may just continue with that," she said. David Cole, founder of research firm DFC Intelligence, said price cuts may come later this year, as console makers jostle for advantage during the critical holiday-shopping season. "I think sometime this year, there’s likely to be a price cut," he said. "But if you do it now, you lose out on the opportunity to make sales in September." XBOX LIVE IN SPOTLIGHT Aside from pricing, hot spots at E3 will include the next chapter in the story of Xbox Live, the much-hyped online gaming service Microsoft announced at last year’s E3. Olhava said Microsoft will need to show a convincing roster of new games that take advantage of Xbox Live. "They really need to prove to the industry this online console gaming thing can take off," she said. Gamers will also be looking for upgrades to Xbox Live. Earlier this week, Microsoft announced a new pricing schedule for the service, which will cost $50 for a one-year subscription or $6 per month. A starter kit, which includes a headset for voice chat and a one-year subscription, will cost $70, up from the initial $50. Pidgeon said it’s smart for Microsoft to offer an annual plan to limit subscriber turnover. "I think if they go for an annual charge, that would probably make it easier for them to maintain the user base they have," he said. "I think they’d have a difficult time getting a significant monthly fee at this stage. They’d risk losing the gains they’ve made." In the midst of stagnating sales for the Xbox, Microsoft will also need to cough up some killer games for the console. Olhava expects a lot of promotion surrounding games developed by Rare, the studio Microsoft acquired in a $375 million deal late last year. Nintendo, stung by sagging GameCube sales, is expected to emphasize the market it does dominate -- portable gaming. Pidgeon expects a number of new games and hardware products that will connect Nintendo’s market-leading Game Boy Advance handheld player with the GameCube. "They’re going to try to use their advantage on the handheld side and really exploit the connectivity between the GameCube and Game Boy," Pidgeon said. On the PC side, expect more hoopla surrounding big-scale online games, despite several recent high-profile blunders in the sector. Sony and LucasArts will again show off "Star Wars Galaxies," the oft-delayed online games based on the movie series, as well as a slew of smaller-scale games targeting everyone from pirate aficionados to armchair generals. Mobile gaming will also get plenty of attention. Nokia is set to reveal more details on its N-Gage wireless gaming device, and game publishers such as Sega will have scores of new titles for cell phones. "There’s a lot of interest in mobile gaming and how you make that business model work," Olhava said. "Basically, it revolves around the carriers ... and how willing they are to subsidize this kind of content."
Source: http://www.msnbc.com/

Comments

Site Statistics

Registered Members: 44,657
Forum Posts: 725,806
Xbox One Titles: 1,304
Xbox 360 Titles: 1,085
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 585
Original Xbox Titles: 987
Staff Reviews: 1,716
Member Reviews: 10,339
News Articles: 14,507
Screenshots: 31,396
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

Manette Xbox One Xfest18
Post by oryanphine
2 Replies, 128 Views

Xbox One X Mountain Dew
Post by oryanphine
0 Replies, 63 Views

Xbox Playdates Canada June 2018 schedule
Post by Kiesey
0 Replies, 158 Views

Xbox One X Black Panther
Post by oryanphine
1 Replies, 426 Views

Xbox Playdates Canada May 2018 schedule
Post by Kiesey
4 Replies, 505 Views

Is anything happening in XBox One land?
Post by DJ tx
7 Replies, 740 Views

Xbox One S Jojeux Anniversaire
Post by oryanphine
1 Replies, 478 Views

Xbox One X Steelbook
Post by oryanphine
1 Replies, 524 Views

Xbox Playdates Canada April 2018 Schedule
Post by Kiesey
4 Replies, 793 Views

Xbox One X World of tanks
Post by oryanphine
2 Replies, 968 Views

Xbox Playdates Canada - March 2018 Schedule
Post by Kiesey
7 Replies, 1195 Views

Any info on Biomutant release?
Post by DJ tx
4 Replies, 1042 Views

Xbox Playdates Canada - February Playdates Schedule
Post by Kiesey
8 Replies, 1341 Views

Xbox Prototype Communicator
Post by oryanphine
1 Replies, 1694 Views

Xbox One S Dragon Ball Fighterz
Post by oryanphine
0 Replies, 1090 Views

© 2000-2018 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics